U.S. futures turn early losses into solid gains on reports U.S.-China phase-one deal may still come before next tariff round European shares rally, unaffected by U.S.-China tensions over human rights violation Yields also reverse higher, after tumbling the most since August WTI surges ahead of OPEC+ meeting Key Events
Futures on the , and staged a swift reversal this morning, charging higher after hints U.S. negotiators to reach a phase-one deal with China before the next round of tariffs scheduled for Dec. 15.
The unconfirmed reports appeared to be a damage-control move after U.S. President Donald Trump’s remarks that a trade deal may not come before the November 2020 presidential elections had sparked widespread selloffs, alongside the latest tariffs threats on South American and European countries.
The selling had resumed earlier on Wednesday after China warned of retaliation “in proportion”—including visa restrictions on U.S. officials—to a bill passed by the U.S. lower house sanctioning a member of the Chinese government for the detention of Muslims in the Xinjiang region.
Russell 2000 Daily Chart
Even before U.S. contracts reversed their initial slide, remained well above a bullish flag.
Europe’s also surged, ending a four-day selloff.
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In the earlier Asian session, regional indices closed in the red. Australia’s (-1.58%) underperformed for the second day due to its dependence on China’s trade stability, while China’s managed to contain losses to 0.23% despite Trump’s remarks on Monday, downplaying the urgency of a trade deal.
It’s noteworthy that U.S. equities took a much harsher hit from Monday’s news than Chinese shares: the tumbled -1.01%, while China’s (-0.05%) held steady.
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In the bond market, the yield on Treasurys also reversed its course, edging higher after slipping back below its long-term downtrend